Creditaccess Grameen Ltd. · NSE:CREDITACC
Creditaccess Grameen — Q3 FY2018-19 Earnings Presentation
53 slides from Creditaccess Grameen's earnings presentation, January 2019
Slide 1: Investor Presentation Q3FY2018-19
Investor Presentation Q3FY2018-19 January 2019 CreditAccess Grameen Limited BSE: 541770 NSE: CREDITACC Corporate Identity No. U51216KA1991PLC053425 www.grameenkooota.org www.grameenkoota.org 1
Slide 2: Disclaimer
Disclaimer By accessing this presentation, you agree to be bound by the following terms and conditions. This presentation (which may reflect some price sensitive information in terms of SEBI regulations and Companies Act, 2013, as amended from time to time) has been prepared by CreditAccess Grameen
Slide 3: Executive Summary
Executive Summary www.grameenkoota.org 3
Slide 4: Performance driven by strong fundamentals
Performance driven by strong fundamentals Overview Growth in Gross Loan Portfolio (GLP) (INR Cr) » Leading NBFC-MFI in India with gross loan portfolio of INR 6,085 6,085 Cr, 26.4 lakhs customers and 659 Branches 4,975 » Predominantly offers micro loans under group liability (MFI loans) 4,075 at 18%
Slide 5: Strong business performance
Strong business performance Q3FY19 6,085.32 Cr 1,762.34 Cr 350.84 Cr 213.87 Cr 99.76 Cr 0.00% 49.3% 36.0% 53.0% 91.4% 55.0% 0.00% Q3FY18 4,074.63 Cr 1,295.53 Cr 229.33 Cr 111.72 Cr 64.36 Cr 0.00% GLP Disbursement Total Income NII[1] PAT NNPA[2] [1] NII = Interest on portfolio loans + Income from sec
Slide 6: Update on Liquidity
Update on Liquidity www.grameenkoota.org 6
Slide 7: NBFC-MFIs well placed on liquidity position
NBFC-MFIs well placed on liquidity position Type of Institutions Asset Tenure ALM Mismatch Lenders Profile Majority exposure to CPs, NCDs & debt market For most NBFCs average asset Medium to Long Term instruments and borrowing from Mutual Funds NBFCs maturity tenure is higher than (>=2 to > 10 years
Slide 8: Comfortable liquidity to meet obligations and fulfil growth requirements
Comfortable liquidity to meet obligations and fulfil growth requirements INR in Crore For the month For the Financial year Particulars Jan-19 Feb-19 Mar-19 2019-20 Opening Cash & Equivalents* (A) 917.01 964.85 1,126.50 - Loan recovery [Principal](B) 460.58 442.42 416.16 2,909.68 Total Inflow(C=A+B)
Slide 9: Positive ALM continues to contribute growth
Positive ALM continues to contribute growth Positive ALM Mismatch*( in Months) 23.14 21.5 21.2 19.43 19.85 19.02 18.55 15.97 16.12 16.31 14.82 14.80 15.03 13.60 14.12 13.08 FY15 FY16 FY17 FY18 Q2FY18 Q3FY18 Q2FY19 Q3FY19 Average Maturity of Assets Average Maturity of Liabilities Note: As per IGAAP w
Slide 10: Company Overview
Company Overview www.grameenkoota.org 10
Slide 11: Proven track record of retaining and strengthening fundamentals of micro-credit model in rural areas
Proven track record of retaining and strengthening fundamentals of micro-credit model in rural areas 01 Rural focus enabling the Company to operate in a segment with low competitive intensity 82% Rural Borrower base 02 Experienced & stable management team with strong promoter group backing Key Manag
Slide 12: Industry Fundamentals
Industry Fundamentals www.grameenkoota.org 12
Slide 13: NBFC-MFIs best placed to address rural credit needs
NBFC-MFIs best placed to address rural credit needs 75% Unbanked Households in Rural Areas1- Large Untapped Opportunity Low penetration of banking credit in rural areas 90% » Massive Govt. thrust to boost financial Total inclusion - NBFC-MFIs to play a key role in Households furthering this. (247 Mn
Slide 14: Operational Highlights
Operational Highlights www.grameenkoota.org 14
Slide 15: Strong rural growth story
Strong rural growth story Outreach 30 659 700 516 600 25 22.61 500 393 20 18.51 400 15 298 238 14.5 26.41 300 176 21.87 10 11.96 16.54 200 8.45 13.87 9.23 5 100 5.69 5.05 0 0 FY-14 FY-15 FY1-16 FY-17 FY-18 Q3FY-19 Customers (lakhs) Borrowers (Lakhs) Branches Borrower Base » 659 branches spread acros
Slide 16: Demonstrated robust growth
Demonstrated robust growth Kendras ('000) Borrowers ('000) 2,261 2,078 157 1,606 1,655 143 103 113 Q2FY18 Q2FY19 Q3FY18 Q3FY19 Q2FY18 Q2FY19 Q3FY18 Q3FY19 Disbursement(Cr) Gross Loan Portfolio (Cr) 1,762 5,794 6,085 1,571 1,195 1,296 3,937 4,075 Q2FY18 Q2FY19 Q3FY18 Q3FY19 Q2FY18 Q2FY19 Q3FY18 Q3FY1
Slide 17: Infrastructure in place to fuel further growth
Infrastructure in place to fuel further growth Branches Employees 656 659 472 7,355 7,798 440 5,267 5,639 Q2FY18 Q2FY19 Q3FY18 Q3FY19 Q2FY18 Q2FY19 Q3FY18 Q3FY19 Borrowers / Branch Borrowers/ Loan Officers 3,650 3,506 425 395 416 400 3,431 3,167 Q2FY18 Q2FY19 Q3FY18 Q3FY19 Q2FY18 Q2FY19 Q3FY18 Q3FY1
Slide 18: Cashless shift based on customer's preference
Cashless shift based on customer’s preference Long term strategy is to move to cashless disbursement mode in phased manner based on customers’ preference. Preference for cashless disbursement given to customers: Small loans: Cash/Cashless based on customers’ preference Larger Loans: Cashless 100% of
Slide 19: Portfolio growth in Q3FY19 came from districts outside the Top 10
Portfolio growth in Q3FY19 came from districts outside the Top 10 » District is the unit of risk in microfinance business, therefore our unit of expansion is district » Geographical expansion strategy: » Penetrate through district centric approach » Expansion to contiguous district after in depth st
Slide 20: Update on Retail Finance Business
Update on Retail Finance Business www.grameenkoota.org 20
Slide 21: Launched retail finance vertical to support customers' growing needs
Launched retail finance vertical to support customers’ growing needs Key drivers Key numbers » Focus on captive and graduated 242 Cr+ Disbursement group lending customers 200 Cr+ Portfolio Group Individual » Separate vertical - Separate Lending lending 26,000+ Customers team , structure and processe
Slide 22: Retail finance contributes 3.29% of total portfolio
Retail finance contributes 3.29% of total portfolio Branches Customers (‘000) 26 46 49 19 6 30 1 2 8 18 610 610 2,352 2,615 486 1,863 1,978 2,181 432 454 Q2FY18 Q2FY19 Q3FY18 Q3FY19 FY18 Q2FY18 Q2FY19 Q3FY18 Q3FY19 FY18 GL RF GL RF Staff Portfolio (INR Cr) 682 790 156 200 416 51 110 246 10 20 6,673
Slide 23: Product Offerings
Product Offerings www.grameenkoota.org 23
Slide 24: Customer centric product suite
Customer centric product suite Ticket Size Tenure Loan Type Product Purpose Yield (INR) (months) Income Generation Business Investments and Income Enhancement Group 5,000 - 60,000 19%-21% 12-24 Loan(IGL) activities Home Improvement Water Connections, Sanitation and Home Group 5,000 - 50,000 18% 12-4
Slide 25: Financial Highlights
Financial Highlights www.grameenkoota.org 25
Slide 26: Adoption of Ind As Accounting Standards
Adoption of Ind As Accounting Standards » The company has adopted Indian Accounting Standards (Ind AS) with effect from April 2018 » Consolidated figures for Q3 FY19 are compliant with Ind AS » Corresponding figures for Q3 FY18 have been restated to be compliant with Ind AS » Provisioning of 1.63% f
Slide 27: ROA for Q3FY19 is 6%
ROA for Q3FY19 is 6% Particulars` Q2FY18 Q2FY19 Q3FY18 Q3FY19 Spread Analysis (as % of Avg. Quarterly Gross Loan Portfolio) Gross Yield[1] 22.3% 22.0% 22.9% 23.6% Portfolio Yield[2] 20.7% 20.5% 21.2% 21.8% Finance Cost 9.2% 7.6% 10.0% 7.4% NII 11.5% 12.9% 11.2% 14.4% Operating Cost 4.8% 5.2% 4.9% 5.
Slide 28: Profit for Q3FY19 grew by 55% YoY
Profit for Q3FY19 grew by 55 % YoY Profit & Loss Statement (INR Cr) Q2FY18 Q2FY19 YoY% Q3FY18 Q3FY19 YoY% Interest Income (A) 209.36 301.34 43.9% 223.95 318.47 42.2% Dividend Income (B) 0.09 0.00 -100.0% 0.04 0.00 -100.0% Net gain on Fair Value Changes (C) 1.77 2.81 58.2% 1.14 3.39 198.5% Others (D)
Slide 29: Strong balance sheet supported by high capital base and robust liquidity
Strong balance sheet supported by high capital base and robust liquidity Balance Sheet (INR Cr) Q2FY18 Q2FY19 YoY% Q3FY18 Q3FY19 YoY% Equity Share Capital 90.57 143.36 58.3% 128.21 143.41 11.9% Other Equity 655.18 2,069.78 215.9% 1,234.21 2,155.82 74.7% Total Equity 745.75 2,213.14 196.8% 1,362.42 2
Slide 30: Q3FY18 Ind AS Vs Previous Indian GAAP
Q3FY18 Ind AS Vs Previous Indian GAAP Particulars (INR Cr) Ind AS (A) IGAAP (B) Variance (A-B) Remark Interest Income (A) Under Ind AS: Interest Income is based on effective interest rate 223.95 226.53 (2.58) Securitisation is considered On-Balance Sheet and hence income is considered under interest
Slide 31: Q3FY19 Ind AS Vs Previous Indian GAAP
Q3FY19 Ind AS Vs Previous Indian GAAP Particulars (INR Cr) Ind AS (A) IGAAP (B) Variance (A-B) Remark Interest Income (A) Under Ind AS: Interest Income is based on effective interest rate 318.47 299.02 19.45 Securitisation is considered On-Balance Sheet and hence income is considered under interest
Slide 32: Well diversified borrowing mix
Well diversified borrowing mix INR Cr Q2 FY 18 Q2 FY 19 Q3 FY 18 Q3FY 19 Banks 1,559.01 46.22% 2,094.83 53.09% 1,443.49 48.25% 2,231.49 47.38% NBFCs 104.61 3.10% 285.57 7.24% 83.52 2.79% 222.22 4.72% FIs 671.47 19.91% 371.22 9.41% 659.31 22.04% 821.21 17.44% Foreign Sources 1038.28 30.78% 725.53 18.
Slide 33: Marginal Cost of Borrowings amongst the lowest
Marginal Cost of Borrowings amongst the lowest Metrics Q2FY18 Q2FY19 Q3FY18 Q3FY19 Marginal Cost of Borrowings for the Quarter[1] 10.7% 8.9% 8.95% 10.37% (on and off b/s loans including processing fees ) Weighted Avg. Cost of Borrowings for the Quarter[2] 11.6% 9.9% 11.63% 9.36% (on and off b/s loan
Slide 34: Highest Grading reaffirmed for the Comprehensive Microfinance Grading by CRISIL
Highest Grading reaffirmed for the Comprehensive Microfinance Grading by CRISIL Q3 FY18 Q3 FY19 Rating Instrument Rating Agency Rating/Grading Rating/Grading Bank facilities ICRA [ICRA]A (Stable) [ICRA]A+(Stable) Non-convertible debentures ICRA [ICRA]A (Stable) [ICRA]A+(Stable) Subordinated debt ICR
Slide 35: Guidance
Guidance www.grameenkoota.org 35
Slide 36: Guidance FY19
Guidance FY19 Gross Loan Portfolio 7,300 – 7,500 Cr PAT 310 – 325 Cr www.grameenkoota.org 36
Slide 37: Annexures
Annexures www.grameenkoota.org 37
Slide 38: Disbursement Trend
Disbursement Trend www.grameenkoota.org 38
Slide 39: Disbursement Trend
Disbursement Trend FY16 – INR 3,349 Cr. FY17 – INR 3,403 Cr. FY18 – INR 6,082 Cr. Q3 FY19 – INR 4,949Cr. 1,911 1,762 1,680 1,616 1,571 1,368 1,296 1,195 1,011 967 832 709 716 611 538 Q1FY16 Q2FY16 Q3FY16 Q4FY16 Q1FY17 Q2FY17 Q3FY17 Q4FY17 Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19 18% 16% 25%
Slide 40: District and State wise diversification
District and State wise diversification www.grameenkoota.org 40
Slide 41: District-wise Exposure Trend (1/2)
District-wise Exposure Trend (1/2) Portfolio FY16 FY17 FY 18 Q1FY19 Q2FY19 Q3FY19 Exposure of Districts No. of % of Total No. of % of Total No. of % of Total No. of % of Total No. of % of Total No. of % of Total (% of Portfolio) Districts Districts Districts Districts Districts Districts Districts D
Slide 42: District-wise Exposure Trend (2/2)
District-wise Exposure Trend (2/2) FY16 FY17 FY 18 Q1FY19 Q2FY19 Q3FY19 District in Contributio Contributio Contributio Contributio Contributio Contributio % of Total % of Total % of Total % of Total % of Total % of Total terms of n to overall n to overall n to overall n to overall n to overall n to
Slide 43: Geographical Diversification
Geographical Diversification States/UT » Karnataka GLP 1447 2539 3075 4975 6085 » Tamil Nadu (Rs Cr) » Madhya Pradesh Portfolio Mix » Chhattisgarh 3% 3% » Odisha 6% » Kerala 4% 8% 10% 6% » Maharashtra 7% » Goa 28% 10% » Puducherry 30% 28% 27% 26% 69% 63% 60% 58% 54% FY 15 FY16 FY17 FY18 Q3FY19 Karna
Slide 44: Product Mix
Product Mix www.grameenkoota.org 44
Slide 45: Product Category Mix
Product Category Mix Group Lending Period Parameters IGL Family Welfare Home Emergency Retail Finance Total Improvement No. of Loans Disb ('000) 457 75 76 71 1 680 %Mix 67.18% 11.03% 11.15% 10.43% 0.21% 100.00% Amount Disbursed (INR Cr.) 1,158 21 98 7 11 1,296 Q3FY18 %Mix 89.39% 1.63% 7.59% 0.55% 0.
Slide 46: Risk Management
Risk Management www.grameenkoota.org 46
Slide 47: Prudent risk management and control framework
Prudent risk management and control framework ✓ Annual risk management plan formulated ✓ Annual risk management plan formulated Board Oversight comprising major risks identified by management comprising major risks identified by management ✓ Board and Risk Management Committee oversight on ✓ Free an
Slide 48: Information Technology
Information Technology www.grameenkoota.org 48
Slide 49: Information Technology
Information Technology Key Technology Initiatives Key Technology Partners Paperless transactions (Core Banking Solution) (Data Centre & Disaster Recovery SMS engine Field with reduced TAT Infrastructure) integration process automation (Email and Collaboration) (Mobility solution) Event based Custome
Slide 50: Credit Plus Activities
Credit Plus Activities www.grameenkoota.org 50
Slide 51: Community Focus
Community Focus » Company aims to meet its responsibility towards society Comprehensive Micro Finance Grading – M1C1 through: » Diligently follow responsible financing practices & client protection principles SKOCH Resilient India Award 2017 for ‘Sanitation Loan’ » Ensure transparency with all stake
Slide 52: Effective use of CSR funds
Effective use of CSR funds Conducts various activities spread across states of Karnataka, Maharashtra, Tamil Nadu and Madhya Pradesh which complement its regular microfinance operations by contributing to improving living conditions of the customer/s. Events Conducted Beneficiaries WASH (Water Sanit
Slide 53: Thank You
Thank You For any investor related queries , please mail to email id csinvestors@grameenkoota.org www.grameenkoota.org 53
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